Some Smaller Banks Still Owe TARP Money

Lifeline Turns Into Long-Term Source of Capital

WASHINGTON—Five years after the financial crisis, 113 small to midsize U.S. banks still owe taxpayers about $2.7 billion, turning what was supposed to be a short-term government lifeline into a long-term source of capital.

The banks, which received funds through the Troubled Asset Relief Program, pose a challenge for the Treasury Department, which is eager to get rid of its financial stakes but is finding many of the banks too weak...